Most homeowners planning to renovate their rooms, bedrooms, hallways, garden, kitchen, and porch usually opt for personal loans or credit card debt. Then, did you know that accumulating debt is not the only solution to remodel your home? Do really need a big loan to improve the look and feel of your house? Nobody likes creditors banging your door asking for money first thing in the morning. That is no financial stability or liberty. There are other ways to finance your home renovation project. Even if you borrow money from a lender, do so in moderation. It should be an amount that you can easily repay every month and become debt-free quickly. Never allow your debts to pile up. Seek out other opportunities to acquire funds for home renovation.

According to an article published on, home renovation debts can rip you off financially if you are not cautious. You should always consider home décor on a budget. There is no point overspending and taking out money from banks and financial lenders at a skyrocketing interest rate. You’ll be ruined forever if you cannot repay such high-interest loans. There are ways to receive money for your home décor without becoming indebted to your creditors forever. Here are three tips to help you:

1. Opt for small loans

Have you heard about payday loans? If yes, then take small cash advances for your home remodeling. You can get small amounts of money on time when planning to renovate your house. When it comes to home décor items, you do not need more than $600 or less at one time. That much money you may have in your bank account or take as a payday loan. You can repay the amount on the next due date. Then, avoid lenders who are ready to provide you with a bigger amount but with installment options. Even installment loans have a high-interest rate.

Though the rate of interest on a payday loan is high, it is better than taking multiple loans and able to repay them on time. If you have the money like $500 to repay your payday loans, there is nothing like it.

These loans are easily available as the internet is flooded with such online lenders. You can get the loan within a few hours, fill out the form, get the money, and spend the same on home décor and renovation.

Since payday loans have a high rate of interest, you should apply for the same only when there is an emergency. For example, if your bedroom walls are extremely damp and damaging the bed, you can opt for these loans. Payback the amount borrowed on time to become financially independent and debt-free quickly. Always check the credibility of the lender before applying. Do not fall prey to scammers and fraudsters online for renovating your home. Opt for lenders with positive debt consolidation reviews in case you already have too many debts and want to merge them into a single payment system at a low-interest rate.

2. Make payments in cash

When adding some art, painting, street glass art, or a photograph on your living room wall, you should always pay in cash. That is an old-fashioned way but safe for your finances. You pay in cash and know that there is no financial obligation in the future. Piling debts can create havoc on your personal and professional life if you are not careful. It could adversely affect your family and kids in the days to come.

Paying in cash is safe, painless, hassle-free, and the creditors will not come back to your doorstep for money. Cash payments are quick, secure, and will not make your life impossible in the future. Therefore, if you have moderate home décor and renovation to make, arrange for the funds from your savings account and checking account. You will not need to pay any fee, and lenders will not bother you day and night over the phone. You have complete peace of mind. You have no interest to pay off and no debt stress and sleepless nights worrying about money.

3. Make the most out of your 401K

Many people think that using 401K is not a smart decision when it comes to your home décor. You have worked hard and saved a substantial sum in your 401K. Therefore, the thought of borrowing some amount for your home renovation will come in your mind. It is your savings and lying useless. Use it in moderation for your home renovation project. Use the money for some beneficial reason.

You can borrow from your 401K easily, as it will not ask you for a credit check. Do you know why? That is because the remaining balance will act as collateral security. Usually, companies cap the sum that you can borrow at 50 percent of the total account balance or an amount or $50,000, whichever is bigger. It is a feasible solution if you do not have the funds for a home renovation.

Based on a survey, 23 percent of people studied reported that they have no regrets borrowing from their 401K. However, always keep your 401K intact if you do not need it. If you plan to take a small sum out, you can go ahead, but do not take out an amount that you do not need.

It is never a good idea to use your retirement funds unless there is a need. Therefore, think and then decide whether you want to take a 401K or not. There is no hurry. Take your time, think, and then decide. You can do home renovation gradually and not everything at once. In that case, your savings account is enough for the purpose. There is no doubt about the same.


When you renovate your home, you must try to pay in cash. Take one part of the house to decorate instead of renovating your full home. This way, you can avoid taking multiple loans that pile up over the years due to non-payment.

Categories: Personal Finance